Traders work on the floor of the New York Stock Exchange during morning trading March 25, 2026 in New York.
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Treasury yields fell broadly on Monday as new comments from the Federal Reserve’s top official eased fears of a tightening of monetary policy.
The reference Cash flow at 10 years the yield fell 10 basis points to 4.334%, while the Cash flow over 30 years the bond yield lost more than 8 basis points to 4.899%. THE Cash flow over 2 years the yield was also more than 9 basis points lower at 3.822%.
One basis point is 0.01% and yields move inversely to prices.
Chairman of the Fed Jerome Powell said Monday that “inflation expectations do indeed seem well anchored beyond the short term, but nonetheless, it’s something that we may end up asking the question of what to do here.”
The remarks pushed down expectations for a Fed rate hike this year in the federal funds futures market, according to data from the The CME Group’s FedWatch tool showed.
Traders have been worried lately that soaring oil prices, driven by the U.S.-Iran war, could force the Fed to raise its benchmark rate to combat inflation.
On the latest developments on the war in the Middle East, the president Donald Trump said As of Monday, the United States is “in serious discussions with A NEW, MORE REASONABLE REGIME to end our military operations in Iran.” That said, if the Strait of Hormuz is not “immediately” reopened and a peace deal is not reached “soon,” the president threatened to “completely” destroy the Middle Eastern country’s energy infrastructure, including its oil wells as well as Kharg Island.
Trump told the Financial Times on Sunday that he could “take the oil to Iran” and seize the country’s export center, Kharg Island. “Maybe we’ll take Kharg Island, maybe not. We have a lot of options,” he said.
Investors are also awaiting several employment reports during the holiday-shortened trading week. The market will be closed on Friday to mark Good Friday.
The closely watched Job Openings and Labor Turnover Survey (JOLTS) will be released Tuesday at 10 a.m. ET, while the ADP employment survey is also due Wednesday. The key nonfarm payrolls report is expected to be released Friday morning.
“Looking ahead to the week ahead, we should start to see the economic consequences of the conflict, as several data releases for March cover the period since the strikes began on February 28,” Deutsche Bank analysts said in a note.
Wednesday’s ISM Manufacturing report will also show early indicators of conflict-related inflationary pressures and its impact on component costs, according to Deutsche Bank analysts.
“Otherwise, the focus in the United States will be on whether rising oil prices have started to have a significant impact on business confidence and inflation,” they added.
